Interesting article about Oil

wanghong

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7 G. X% L( r+ A" @( aBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
6 i" Z! d3 D' j  K& acompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
5 p8 F4 w. O, l4 ncrude prices improves. This implies also to good names such as Shell,
2 q1 b" O* d( h# |$ b( I0 QEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
. Z. ^) K6 B  b9 I, I! a3 }" imonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
2 x8 G2 @* T7 }7 _This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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5 K( \& h/ O. x+ K# z! U4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
* f& @) d# W+ J# ?4 d* P  x' p3 cpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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- |8 ]% C7 a! [. l4 u5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
& Q9 j4 a' |5 ^, ^cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
" \7 T) O3 Q  m; h, Xproducing 30,000 gallons of bio-diesel per day from pork fat.

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9 B- N# e  t- w6. There are 99 nuclear reactors in various stages of planning and
  }$ b4 k, h! I( K) w2 W) m; B& sconstruction around the world at this time. Several hundred more are
! ]2 _8 T# u; qexpected to be built in the future. Much of the energy they produce
will replace oil.
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7 L1 X! a7 a% y4 w- O. `7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
6 Z$ l0 D3 k5 y; mwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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& }  P8 U% L- T. [% H# J9 ]8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

1 e; O' w9 m  w2 G4 ]9 S" g! a: {& E
# o' u% ?4 F( c/ x8 W# H9. Coal is being transformed into a clean burning liquid fuel. The CO2
% ^- ?0 `) r! J* tproduced as a byproduct is sold to oil companies for injection into
1 u. q* H; _$ ^/ loil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
. i8 x' K8 l/ Xsource. Three new wind turbines are being erected every day in the US.
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% l* i9 X  v3 q* QEach of the above by itself will not make a large difference in the
2 O- ?4 s5 q9 N: y4 L  \5 d' `price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
6 m- r9 A. z6 {& p. ]& Yto control oil prices.
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. u: G3 V% T! A" IWith the above scenario, I still believe that there are under
; t1 G: u5 |" ~2 N) U( G& Vperformed OIL companies and probably they are yet to get the justified
value .....
' y7 X- W) ]' ^: ~5 Y7 I5 \" mIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


' F4 \3 z3 {: JThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
7 f' T, E3 D+ u7 s( ^$ H2009 ... FYI-Only